New Year! New Solutions!

New Year!
New Mortgage!
Mortgage up for renewal this year?
Upgrade your present house?
Build a 'Granny Suite'?

Let's look into it and find you the best solution for your situation.
Visit www.kroemermortgages.com
Email akroemer@mortgagegroup.com

Homes With Secondary Suites- What To Look For

Beware of homes with secondary suites and check with the City to see if it is a legal suite.

The following is an interesting read if you are considering buying a home with a secondary suite.  It outlines what can go wrong even when the information is thought to be truthful by the now homeowner because that is what was conveyed to him/her when he/she bought the home. How many houses were changed or altered without permits.  While reading this article it can relay just what can go wrong because someone did alterations to a home 20 or 30 years ago without a permit and necessary permissions.  The one big rule is that is is up to you to do your due diligence and find out for sure if the secondary suite is legal or not. It is better to find out before you buy it then after.


By Jean Sorensen
As municipalities across Canada move more towards increasing housing density on land once zoned for single-family homes, real estate agents are being challenged with a barrage of conditions related to secondary living quarters.

The danger comes, says Marty Douglas, managing broker for Coast Realty Group in Courtenay, B.C., when the sales rep advertises “mortgage helper suite with $700 or $800 revenue” and the buyers qualify because of the extra revenue. Douglas says: “If it is not a legal suite and they (buyers) faced evicting the tenant, the problems can really begin for the Realtor. He really has to be cautious on suites even when the municipality turns a blind eye.”
The blind eye is more of a shift of political outlook. There has been a general trend in the marketplace for homeowners to put in suites or convert suites illegally and municipalities largely did nothing unless a complaint was lodged. But now municipalities are passing bylaws allowing licensed suites. Even West Vancouver city council this year bowed to pressure on secondary suites and gave those with extra living units (estimated at l, 000 in the area) until Sept. 30 to register their suites or face a fine of $300 per day. (Only an estimated l0 per cent were registered when the bylaw was passed).

The difficulty for real estate agents lies in sorting out the grey areas around legal and illegal under a mixed bag of conditions. An average of one case a year is now landing before the higher courts as municipalities and homeowners fight over who has what rights. In most cases that have been decided, the homeowner has lost and the B.C. Supreme Court has ordered the units to be removed or demanded extensive renovations.

“There is a rule in real estate – if you are unsure, disclose, disclose and disclose,” says Scott Carpenter of Vancouver’s The Carpenter Group, a Re/Max group of real estate consultants and associated professionals ranging from a conveyance lawyer to mortgage brokers and home staging specialists. The group works on the City of Vancouver’s west side, dealing in high-end properties.
Issues can be complex. Owners may often think their units are legal when they are not. Or, like the film Lost in Translation, the legality of what they own has become garbled. In the recent court case of the Corporation of the Township of Esquimalt v. Crosson (2010 BCSC 1490), an Esquimalt couple were found in breach of bylaws when their duplex actually had three suites (three kitchens and three mail addresses – although only two were legal). Court records show the previous owner converted the house to a duplex with the city approval in the early 1990s. The previous owner testified in court he was given the right to do the conversion and he submitted an amended plan indicating a third kitchen was being installed on an amended plan. The couple relied upon the amended plan in the city files, which “appeared to be the approved plan with some additional handwritten notes.” The previous owner couldn’t remember the name of the individual who made the red notes on the plan. But, he felt he had approval and went forward. Staff subsequently wrote the owner a note in 1993, saying while the third kitchen in the downstairs basement would be allowed, it could not however be used for a suite.

The judge found that the question to be determined was “not whether three kitchens were installed with permission, but whether three dwelling units were installed with permission” and while bylaws allowed for a duplex conversion, whether they also allowed for three dwelling units. He ruled that two bylaws in effect allowed only for a duplex conversion and the suite didn’t qualify as one of non-conforming but permitted. He gave the owners six months to remove the third suite.
The case clarifies some of the situations that can arise between owners and the municipality and zoning laws. The judge in the case points to Port Coquitlam (City) v. Hoffer (l988) BCSC Vancouver A871964, which stated “a municipal officer cannot give valid permission” to use land for something outside the bylaws and the city can’t be stopped from taking action even if the officer has made a commitment.

In Langley (City) v. Wood (1999), the city stopped the use of a two-family dwelling in a single-family area even though the owner had met with the building inspector and plan checker and obtained permission for its use for more than one family. When the home was moved on to the site, it was deemed that it did not fall into the category that would have made it legal non-conforming. The home could therefore only be used for one family.

Sales reps taking any listing for a suite within an existing building need to check with municipal authorities to determine the validity of any such property, says Douglas. “The owner might say it is legal, but I tell them that I am going to have to check anyway,” he says. If the owner is not telling the truth, then “he usually says something like – oh, no, don’t do that.” That then brings the issue of whether the suite is legal into question again. (Carpenter said he also does due diligence checking out what owners say – and, he does a walk-through looking for “red flags” or tell-tale signs such as low ceilings or other construction features that may signal it is not built to any standard or has not been inspected.)

Once a suite is determined to be unlicensed or illegal, there are other questions that emerge. Was it properly built and were the proper inspections carried out for the work completed? Douglas said there was a case in Comox on Vancouver Island where the city gave approval for an in-law suite over the garage. However, what the owner constructed exceeded the bylaws and the suite could not be used. Douglas has also written in REM about the problems of a Nanaimo homeowner who had to remove an in-law suite when a neighbour in a single-family development (with covenants restricting it to single family) complained. As Douglas points out, the removal occurred even though the city permitted such suites.

The lesson to Realtors is that “if you have checked the city hall zoning and the city says ‘no problem’ you still have to check the building scheme and see if it does conform,” Douglas says.
The Nanaimo case is backed up by another judgement in 2009 Robins v. Cranbrook (City) 2009 BCSC 355, 58 M.P.LR. (4th) 87. The court there stated that the issuance of a permit, which is in any event governed by bylaw, cannot amount to a promise that a restrictive covenant in favour of the city would not be enforced.

Today, Douglas says, agents are posting the documents relating to suites online with listings. He says the selling agent has a responsibility to check with the city (and document who he or she speaks with) “and the buyer’s agent also has a responsibility to make sure the documents are correct,” he says.
The ensuing problems that can result when a house is listed with illegal suites can cause more headaches than a sales reps wants to deal with. In Burnaby (City) v. Chiodo 2008 BCSC 491, the 1950s house provided the original owner/builder with a temporary occupancy permit to have a kitchen and live downstairs while the upstairs was finished – a common practice of the era. Those living quarters were to be only temporary but later owners made them permanent. There was a later permit in the late ’60s to put in a bathroom, but the existing old bathroom was to have been torn out and that was never done.

In summer 2006, the owner decided to sell and the house was listed with two suites downstairs. A complaint was made to the city and a city inspector called the listing agent to tell her there was a problem with non-compliance. The owner then attempted to sue the city (the case was dismissed) claiming for damages as he blamed the advice given to the real estate agent prevented him from selling the house. The judge sided with the city and ordered a list of upgrades, tear-outs and inspections to the property.

Vancouver lawyer Richard Bell, whose firm Bell Alliance deals mainly with real estate law and property purchase law, says there is a growing trend for homeowners who have illegal suites to get them licensed before selling the house. “They are asking the city to come in and inspect them so they qualify for a legal suite,” he says. Still it is the buyer’s duty to disclose and the real estate agent’s duty “to fully advise on the property” with the clients about the perils of buying a house with an unlicensed suite, he says. “When we do see an unauthorized suite, we make sure that it is a buyer-beware situation,” he says, adding that the owner runs the risk of having to evict tenants or carry out costly renovations.

“The cost of renovation can far exceed any income revenue,” says Bell.

The New Year With New Predictions on The Housing Market

Happy New Year
Happy 2013

As I look to this new year, I am bombarded with mortgage news and predictions, just as you are; as we all know; the more bolder the headlines the more readers read, which sell more newspapers, subscriptions etc. So, today I will dig for all the 2013 predictions and post them here and as we move throughout 2013 we will see which predictions came true and which were just hot air.

Background on the housing market

We still have historically low interest rates. People still want to build and live in the big houses, 1200 sq. feet just does not cut it anymore. With expenses going through the roof, like hydro, gas, water and property taxes, having those big houses deplete our free spending money, even with the low interest rates for our mortgages. More and more people are living paycheck to paycheck to be able to afford those big homes, even though they are making great incomes. The term is house poor. While trying to afford their big homes their credit cards are being maxed out, raising concerns that Canadians are getting more and more in debt as the year progresses.

2013 is the year to realistically look at your house expenses and decide weather it would be advantageous for you to move on down a few square feet , rent out a room or reconfigured your home with a Granny Suite. Where else can you cut down on expenses? Hydro only promises to raise the cost of electricity, property taxes are always going up to pay for ithe infrastructure of where we live.

Students and senor citizens are always looking for more economical places to live. Renting a room to them may be an avenue or if you not comfortable having a non family member in your home would it be feasible to build a Granny Suite.

Sometimes city bylaws or zoning will not allow for this, but as we are progressing to not being able to afford the big houses anymore and many lower income people need affordable. warm and safe places to live, the cities are coming onboard to allowing the secondary suites or more affectionally known as Granny Suites.

As mortgage professionals we have a product called Refinance Plus Improvements. Which would allow you to refinance your home, plus get extra money to put in a Granny Suite for the same low mortgage interest rate. Banks do not offer this product.

Now on to predictions for 2013

1. Moderation is the buzz word when discussing the other positives. The economy is still creating jobs and the US economy has recently shown improved job creation. If this persists, it will contribute to faster job creation in Canada.

2. Sales will be sluggish. Housing prices will decline by about 10%

3. Demand for resale homes from both first-time and repeat buyers will decline slightly in 2013 as the slow pace of economic growth, global financial uncertainty and less accommodating mortgage market conditions temper sales.

4. Improving economic conditions and stable home prices will support housing demand in the second half of 2013

5. Mortgage interest rates will stay low for 2013

6. Buyers will take a little bit more time to buy and the sellers will have to be more patient.

7. In 2013, condo sales will also stabilize, thanks to first-time buyers who will purchase more affordable condos and “empty nesters” who will likely purchase more extravagant condos

As with any predictions it is only an educated guess. Changes in the economy can dramatically affect the outcomes. It is a good time to buy if you are in the market for a home. Interest rates are low, housing prices are stable with only a projected decline of 10%, that may have already happened in the area that you live in.

For more information on mortgages, how to Refinance your home to make improvements or to build a Granny Suite, send me an email. My advice is always free.
Knowledge is power.

akroemer@mortgagegroup.com

Merry Christmas

 I would like to thank you for following my Blog.  As we head into 2013,  I wish you a Merry Christmas and a Happy New Year to all my  Blog followers in the many different countries.
If you would like different or specific information about Canadian Mortgages please email me with your questions.
akroemer@mortgagegroup.com

Thank you


Pageviews by Countries

Entry	Pageviews
United States	5854
Canada	1451
Poland	571
Russia	496
Germany	245
France	222
United Kingdom	157
Australia	104
India	48
Slovenia	37

Investment Property For The New Year?

Is 2013 going to be the year you add in an investment property to your portfolio of investments?
Interest rates are still low, so is it time to take advantage of a low rate mortgage payment,
making it more affordable and profitable to buy an investment property?
As with all other investments, it pays to study the market and gather all the information that you can.

Here are some tips for purchasing an investment property:

Do your research. If you are a first-time investor, it would pay to study the market as well as the risks and benefits of investing in properties. Be sure to brush up on the basics, such as the various factors that affect property prices and how these cause prices to rise or drop. Also pay attention to trends and news on the market and understand how these can influence the market. It's really important to become familiar with the ins and outs of the real estate business before buying investment properties as thorough preparation is one really good way to ensure success in the business.

Choose properties in a promising area.If you have done your research right, you will eventually come across "promising" areas where you can buy properties that will yield great profits. Promising does not necessarily translate to upscale properties that fetch high sale or rental prices, or cheap investments that allow you to return your investment quickly. A promising location is one that offers special features that are truly attractive to tenants. These features include schools for families, entertainment hubs for young professionals, or low-cost housing for college students. These promising features may differ with each type of tenant, and as such, you will have to...

Consider the type of tenants in the area. It may be tempting to choose a piece of properties based on what you would want yourself, but it's best to think of what your target tenants would like instead. When choosing properties, ask yourself what features your tenants would like or need. For instance, if you are catering to the college crowd, easy access to amenities, such as Laundromats, grocery stores or coffee shops may be important. If you plan on having families or young professionals as tenants, the property features you need to prioritise will change accordingly.

Take into account future expenses. As an investor, you need to carefully consider the expenses that will later on influence how much you earn from your investment. These include expenses for home repairs or renovations to make the house attractive to tenants and the taxes you will have to pay for on a regular basis. Make sure to include all these into your cost calculations to ensure that you will be able to afford purchasing the property and eventually earn back your initial investment.

Find a mortgage professional. They will let you know how much you will be able to afford, plus the interest rates will usually be lower than of a Banks interest rate, enabling you to profit the most.

Find a Realtor knowledgeable in the area of investment properties. Their expertise is usually because they have entered the investment property market and you can learn from them first hand all about what worked and what did not work for them. Could save you thousands of dollars.

Any questions, send me an email
akroemer@mortgagegroup.com

 

 

New Year's Resolution -Toastmasters May Be One

 

 

The Definition of a New Years Resolution is : A New Year's resolution is a commitment that a person makes to one or more personal goals, projects, or the reforming of a habit. A key element to a New Year's Resolution that sets it apart from other resolutions is that it is made in anticipation of the New Year and new beginnings. People committing themselves to a New Year's resolution generally plan to do so for the whole following year. This lifestyle change is generally interpreted as advantageous.

Last year I made a new years resolution to join Toastmasters. It took me until March to fulfill that resolution. Every week that went by, I had some excuse, In the Comox Valley where I live we have 3 different clubs- meeting different days, so it wasn't the lack of choice of the day that stopped me it was the fear of getting into the unknown. The big fear of speaking in front of strangers.

That first Wednesday in March, I took those fears, stifled them and headed to the Toastmasters meeting. I knew no one but I knew I wanted to become a better speaker.

I was warmly welcomed by the club, everyone introduced themselves and a member took me under their wing, introduced me to the club and sat beside me explaining what was happening as the meeting progressed. I did not feel confident enough to speak that evening and that was okay. Their is no harsh push for you to speak. It is a go at your own pace type of club.

The next week, I had a no excuse for not going. Let me tell you, I was looking for any excuse but could not. The club was warm and inviting, so I went.
In Toastmasters there is Table Topics, which is a time to practise speaking for up to 2 minutes without preparation. Thinking on your feet they say. You are asked a question usually to go with the theme of the evening and you answer the question to the best of your ability. The first night I went 26 seconds and that was fine. But, also that night I saw how much I needed the expertise of this club and their members to help guide me to become a better speaker.

I joined that night and I have never looked back.

There is a small fee when joining to pay for your books and rental of the room you meet in. The club I belong to is is less than $100.00 every 6 months. A bargain for sure.

What have I accomplished in 9 months at Toastmasters?
- Table topics for 2 minutes no problem
- Preparing and organizing a speech for 5-7 mins
- Preparing and organizing a educational speech for 8-10 minutes
- Prepared speech for 5-7 minutes without the use of notes (you can use notes for as long as you want)
- a confidence in speaking
- confidence in life itself
- new friends
- Leadership skills
Not bad for 9 months

Anyone and everyone can benefit from Toastmasters. Toastmasters is international. It is hard not to find a club in your area. Maybe this year is your year to join.

http://www.toastmasters.org This link will take to their introductory page as well as a club finder


Got questions about Toastmasters-- send me an email.

akroemer@mortgagegroup.com


So, What will be your New Years Resolution?

Welcome to NORAD Tracks Santa--Don't be disappointed- find out where Santa is

 

<iframe width="560" height="315" src="http://www.youtube.com/embed/jb0gj_sIBdg" frameborder="0" allowfullscreen></iframe>

 

 

 

 

Welcome to NORAD Tracks Santa

 

All of the preparations for Santa's journey are in place!

Santa's elves have been busier than usual this year preparing for Santa's launch on December 24th! Return each day to receive updates from the North Pole and to discover new surprises on Santa's Activity Page.

For even more fun holiday activities, visit the About Santa page.

Operation Good Will: Find out how you can help make this Christmas very special for those who serve our nation. Check out what each military service is up to these days, and learn how you can help keep NORAD Tracks Santa going for future generations!


Find out what NORAD does the rest of the year (while not tracking Santa) by subscribing to us on Facebook -- or visit us at www.norad.mil.

Track Santa on your Mobile Phone!
Download the official NORAD Tracks Santa mobile apps today!

Download the official NORAD Tracks Santa Windows 8 app!

"I Tracked Santa"
Official Licensed Products!

Contact NORAD Tracks Santa | Privacy Policy | Pressroom

Wow Congrats TMG The Mortgage Group Canada

TMG The Mortgage Group recognized for a third time in 2012
 

This year Grant and Debbie Thomas (co-founders of TMG The Mortgage Group) won the Mortgage Broker's Association of British Columbia's (MBABC) Pioneer Award for Lifetime Achievement, and then TMG  was honoured with CAAMP's Partners In Excellence Award, They have done it again. TMG has been recognized as one of the Best Companies to Work for in B.C. The gala presentation was held on November 28, 2012 at the Fairmont Hotel in Vancouver.

Winners are selected through a year-long process. The survey focuses on four key areas: Talent Systems, Employee Engagement, Leadership Dynamics and Organizational Culture. In addition to top overall rankings, TMG placed second in the Financial Services category.

'This award is a reflection of the hard work and dedication of our many employees'.

10 Best Companies to Work For: Finalists With More Than 100 employees

1. HootSuite Media Inc.

Digital Tech and Tech Services

When the number of employees in your company grows 900 per cent in less than a year, then “I don’t care what it is you do; you’ve got a new company culture,” says Ambrosia Humphrey, director of human resources at HootSuite Media Inc.
Handling the hyper-growth is all in a day’s work for Vancouver’s tech company on steroids, which recently hit four million users and launched a London office and U.S., Australian and European subsidiaries. The company is also pulling up its Gastown roots for a much bigger office space at Ontario Street and Eighth Avenue in Vancouver – complementary neighbourhoods, says Humphrey, because “we didn’t want to alienate anybody by moving to Burnaby and having our employees commute an hour each way.”
According to Humphrey, CEO Ryan Holmes emphasizes a user-centric product and an employee-centric company, which includes quarterly employment-engagement surveys. “Even our name was crowd-sourced,” she says. The result is that HootSuite feels “like a functional family,” according to one staffer. Another employee recalls a situation where a colleague wasn’t performing or happy in his role, but “letting him go wasn’t even discussed; the company simply transitioned him to a role that was a better fit.” Perks include last summer’s all-inclusive company retreat (including interns), the $300 a month made available for a social event and surprise Christmas gifts. Plus, all full-time employees have options in the company.
At the end of the day, Humphrey says HootSuite’s culture is “the glue that holds us together. We want our employees engaged in that culture so it feels real.”

2. Daniel Hospitality Group

Hospitality

Daniel Frankel certainly understands that hospitality lies at the heart of the restaurant business and treats his staff accordingly. “It’s always been an inherent part of our culture to cultivate a family-style environment,” explains the president and CEO of Daniel Hospitality Group. That extends to inviting all staff to lavish family dinners his company throws every Thanksgiving and Christmas, where managers cater to front-line staff, many of whom have no local family.
The Daniel group of restaurants began in 2001 with a hot- dog cafe in Coal Harbour. The following year Frankel took over The Prospect Cafe at Prospect Point in Stanley Park and he has since amassed a collection of iconic locations, including The Mill Marine Bistro on the Coal Harbour seawall, Stanley Park Pavilion facing Malkin Bowl and the Burrard Bridge Bar & Grill. His latest addition is the Tap & Barrel at Olympic Village and a Tap & Barrel at the convention centre is under construction.
Cultivating a family vibe starts with hiring: “We are truly careful who we bring on board, and we invest a lot of time in training,” remarks Frankel. “If there’s any hesitation, or indication that they’re going to be a weak link, we make sure that they move on because there’s probably something better for them.”

3. Para Space Landscaping Inc.

Consumer Services

Not everyone enjoys working outside with soil and plants year-round, but Para Space Landscaping goes out of its way to find people who do.
“We put a lot of stock in the culture of the company,” says Jeff Foley, executive vice president, whose role includes overseeing operations and personnel. “We hire for quality of person first. From there we often have to train them to be horticulturists or landscapers.”
That devotion to career development and continuous improvement is recognized by employees, many of whom cite company-sponsored Red Seal accreditation and training and certification in such specializations as pesticide application and horticultural technician. Working on cutting-edge landscape designs is another big draw for employees.
From when the company was founded in 1979 – by president and CEO (and father of Jeff), Peter Foley – to its current staff of more than 100, it has maintained a close culture. “We do a really good job of hiring people that fit with the rest of the group,” explains Foley. “When we’re screening people, we think, if Para Space were a person, would they be friends with this candidate?”


4. Cactus Restaurants Ltd.
Vancouver | Hospitality | 1,751 employees
British Columbians love Cactus Club restaurants for their celebrity chef, delicious fish tacos and nubile wait staff. Its loyal staff, however, are there for the great wages and tips, and growth opportunities within the company and industry. “A great training program” comments one employee, while another trumpets “strong leadership,” calling the company “a well-oiled machine.” Management get consistent kudos from employees for being both supportive and accommodating with flexible schedules. What one staffer calls the company’s “vibrant, youthful atmosphere” is a magnet for many, not to mention what a lot of employees call “great” and “consistent” food, which even non-staffers can attest is true.

5. Joe Fortes Seafood & Chop House Ltd.

Vancouver | Hospitality | 150 employees
Though it recently changed ownership, Joe Fortes Seafood & Chop House continues to attract the best in the restaurant business. “My hard work doesn’t go unnoticed,” says one employee, while another cites its “great benefits package for hourly servers” as another reason why the company retains so many long-term employees. In an industry where the front-of-house staff (servers and bartenders) are often a world apart from the back-of-house, or kitchen staff, one staff member notes, “The teamwork mentality between FOH and BOH is very present, which isn’t common in this industry.” Most notably, a respect of work/life balance was highlighted by many staff.

6. TMG The Mortgage Group Canada Inc.

Vancouver | Financial Services | 146 employees
TMG’s mantra is to find mortgage options to suit the distinct financial realities of each of its clients. For its staff, however, TMG delivers what one employee calls a “big-company presence with the feel of a small, family-like organization.” Staff are encouraged to keep learning and TMG offers educational programs so brokers can continually upgrade skills, which translates into more income during slow times in the industry. Employees are also encouraged to uphold ethical values and “not to break the rules to get a sale,” explains one staff member. “I believe this to be the most ethical company in the mortgage business,” another says.

7. Nurse Next Door Home Healthcare Services Inc.

Vancouver | Health Sciences & Services | 211 employees
Nurse Next Door got its start in 2001 after co-founders Ken Sim and John DeHart couldn’t find appropriate care for their elderly loved ones. Today the two have built Canada’s largest franchised in-home care service and the personal caring at the heart of the enterprise weaves its way through the entire organization. “We have a culture of caring,” says one employee, “everyone we work with has a big heart.” Another notes, “Nurse Next Door makes me feel part of something special. Every day I feel that I am making lives better by living the core values of the company.”

8. Odlum Brown Ltd.

Vancouver | Financial Services | 225 employees
Founded in Vancouver in 1923 by General Victor Wentworth Brown and Malcolm “Buster” Brown, Odlum Brown has grown to be one of Canada’s most respected independent investment firms. Wholly owned by its employees, the firm fosters a culture of pride and respect. “There is a culture of integrity throughout the firm,” notes one employee, while another says that “Odlum Brown’s community involvement and great track record make it a company where the employees are proud to say they work there.” Perhaps most important is the company’s respect for its employees, summed up simply by one staff member: “I feel appreciated.”

9. Global Relay Communications Inc.

Vancouver | Digital Tech and Technology Services | 196 employees
In the heavily regulated financial services industry, safe, accurate and thorough archiving of communications is essential and increasingly complex. Global Relay Communications develops cutting-edge technology to keep one step ahead of international competitors, which fosters an obvious pride among its staff. “In a very competitive industry, Global Relay has become dominant worldwide in providing critical services to the world’s fussiest and most secretive industry, requiring technical superiority, great marketing, absolute integrity, amazing vision and great determination,” boasts one employee. Another cites “extremely smart, knowledgeable, fun people to learn from and opportunities to mentor less experienced staff.”

10. Great Little Box Co. Ltd.

Vancouver | Manufacturing and Transportation | 161 employees
The little company that could is well known for its culture of inclusivity, which last year included a “family” vacation to Mexico for its entire staff as a reward for meeting annual goals. Even as the manufacturer of packaging products and shipping supplies has grown from its humble beginnings, it remains an open book to all employees. “We know where the company stands,” comments one employee, citing monthly meetings where staff are briefed on the latest financials. Another cites confidence in employees: “We are all encouraged to be strong leaders, make decisions, take action
 

Survey Says-- You Want To Know More about Financing a Home

 

The #1 comment I get is -- I just want a simple mortgage !
Mortgages are far from simple mainly due to each mortgage being different because everyone has different circumstances. It is a big loan for a home, and Financial Institutions want to know they will get their money back. They are not interested in owning your home if a default should happen. It is more headaches for them.

1. So What Should You Do If You Want To Buy

Get your financial information in order.
- Make sure you have pay stubs, T4's, Assessment papers from your income tax
- Know what your savings are
- Got RRSP's - you may be able to use them for your down payment
- Know what you owe in credit cards, car payments, personal loans

2. Make an Appointment With a Mortgage Professional

A Mortgage Professional will help you get the needed information on financing a home for your circumstance. They cannot give you accurate advise without the accurate financial information. That is the main reason, they pull a credit score right away. It gives them the information needed on who you owe and how you have managed your credit in the past.

3.Your Credit and The Mortgage Professional Services

A home is a big investment. You will spend at least 15-25 years paying for your home. To predict if you are a good risk the Financial Institutions look at your ability to pay now and in the future, also by looking at your past in relation to your credit score and how you managed past credit.
Most people have had a rocky period when it comes to their past credit, due to unpaid cell phones, divorces, job loss, etc. That is just part of what happens in Life. The Financial Institutions understand that. That is why once you have had a hardship, you are able to build up your credit score once again.
Most clients I ask about their credit score, don't know what it is or how it applies to them. It is a huge mystery to most people. That is why it is so important to work with a mortgage professional, so they can guide you. If you go to a Bank, the conversation is yes or no. The mortgage professional on the other hand will advise you on what to do next. What can you do to get your home? A mortgage professional will let you know. The job of a mortgage professional in simple terms is to find you the best mortgage and to secure financing for your home.

4. What is Involved In Financing

-income -the ability to pay a monthly mortgage
-paperwork from the past 2 years-- Notice of Assessments, T4's, a record of savings or where the down payment will come from, bank statements, letter from your employer, credit report from your mortgage professional
-good credit score

5. Why Does It Say 5 Year Term/ 25 Year Amortization?

Is my mortgage paid off in 5 or 25 years?
A mortgage is usually long term so the correct answer would be 25 years. Because, the mortgage is so long in a time period, you have the ability to break it down into shorter terms to reflect the newer interest rates and the new options that have been put into place. A 5 year term is the most common term in a closed fixed mortgage.

Is That good?
It is nether good or bad. For right now the interest rates are low, when you renew in 5 years from now chances are you will be renewing at a higher interest rate. Although if you have had a mortgage previously and your mortgage is now coming due, you would be getting a lower interest rate then what you had previously. It is all about timing that no one can control.
For options that usually is better for you. We now have more liberal prepayment clauses then we did 5 years ago. It is always a good idea to talk to your mortgage professional about 3-6 months before your mortgage needs to be renewed. They will watch the market for you to time a better deal for renewing.


How Much Does A Mortgage Professional Cost?

The services of a mortgage professional is free. The financial institutions pay the mortgage professional when a mortgage is secured. So unless you have an extreme case, you will not pay for any of these great services. The mortgage professional will disclose to you at the start if they require payment for securing a mortgage for you.

When Buying a Home What Do I Pay For?

-Closing Costs-- lawyers, property transfer tax, home inspections
If needed-- home appraisal, well inspections, septic inspections
For closing cost a budget of 1.5% of the purchase price is usually enough to cover this expense.


Of course, if you should have a specific question please email or call me.

akroemer@mortgagegroup.com
1.250.650.4182

What's New With CHIP?

 

 

What is a CHIP Mortgage? CHIP Home Income Plan?

Through the CHIP Home Income Plan, homeowners 55+ can access up to 50% of the current appraised value of their principal residence. The exact amount available will depend on the age of the homeowner and his or her spouse as well as the location and type of home.

The funds are tax-free and there are no restrictions on how they can be used – with the exception that any outstanding loans secured by the home must be paid off. You might use the money to invest, to renovate your home, or simply to improve your lifestyle.

Homeowners can choose to take a lump sum or to receive payments over time. No regular repayments are required; the loan does not become due until the home is sold or both homeowners move out. Interest is added on to the original amount borrowed. When the amount is repaid, all remaining equity in the home belongs to the homeowners (or their estate).

You continue to own your home. There is no change in title. You also remain responsible for property taxes, home insurance, and all your regular household bills and home maintenance.

What's New With CHIP?

We have reduced our legal, closing & admin costs – to $0 where a client initially chooses a 5 year interest term; and to $795 where a client chooses an initial 3 year interest term.

How Does The CHIP Advances Get Paid Out

Just a reminder that CHIP clients have a number of different options for receiving their CHIP advances:

(1) can take the full amount approved all in one lump sum, or

(2) can take an initial lump sum ($20,000 minimum) and take the rest later (optional). They can take the rest in two ways: (a) in lump sum draws of at least $10,000 each time, and/or (b) as monthly draws of $500 and up (ie. like an income), or

(3) right from the start, they can take their full CHIP in fixed monthly/quarterly draws of at least $1,000

CHIP advances are not regarded as income for income tax purposes. So, they don’t affect any government benefits customers may be receiving.

These options # 2 & 3 might work well for those who are not comfortable with the risk involved in investing money for income; but would like to have extra monthly income. For example, clients who would like to be able to afford some in-home care so they can stay in their homes longer.

Want more information? Call or email
1.250.650.4182
akroemer@mortgagegroup.com

Pennies in 2013?

 

The Government of Canada announced in the Economic Action Plan 2012 that it will remove the penny from Canada's coinage system. The Royal Canadian Mint will no longer dispense pennies beginning February 4, 2013. However, the penny will continue to be used in cash transactions indefinitely for businesses that choose to accept them

Cash transactions where the penny is not available for use should generally be rounded up or down to the nearest five-cent increment in a fair and transparent manner after

the calculation of the HST.

Non-cash payments such as cheques, gift certificates, credit and debit cards will not be subject to rounding.

Credit Reporting Errors Costing Canadians

 

 

Consumers face higher interest rates, credit card denials after mistakes made

 

Have you been turned down for credit cards, loans or mortgages when you know you have a great credit history?  I did once.  Why was I turned down? Because somewhere along the way my birth date was changed at the credit bureau.  It was changed from August 21 to August 7.  Before this I was never denied for credit and the hardest problem is they won't tell you why you are being denied. I understand this concept but it does get harder to fix the problem. 

 I surfed the net trying to find out the most common mistakes- the answer was the birth date. So |I phoned Equifax up and they sent me the information they had on me.  Guess what? My birth date was X'ed out to protect me in case my mail was stolen.  I could not confirm whether my birth date was wrong, they would not tell me any information. So what do you do?  I looked over the information they did have on me that was not X'd out and decided, to go online and buy my credit report. 

That credit report came back with the wrong birth date. The fix was easy mail or fax back the right information , with supporting documents- copy of birth certificate.  After that no more problems for me.

I was lucky, because I had an easy problem to fix. The article below have people that are not so lucky.

A good rule to live by,  if you are preparing to buy a house, have your credit checked first, to make sure your credit report is accurate. Your mortgage professional can check your credit while you are still preparing to buy a home- 6 months before you are ready to search for a home, would be a good time frame.   How frustrating would it be to lose your dream home because of mistakes on your credit report?

By Alex Shprintsen and Annie Burns-Pieper, CBC News

Posted: Nov 19, 2012 5:22 AM ET

Credit rating mistakes are costing unsuspecting consumers thousands of dollars in higher interest rates and preventing some from getting much needed loans, a CBC News investigation has found.

In the past few years, more than 500 complaints have been filed with provincial consumer affairs agencies across Canada about credit reporting agencies, many alleging errors by companies led to their poor credit scores.

 

"I feel like a guy who is made to pay for the sins of something I didn't do," said Mervin Smith. "It's like being wrongfully accused of something."

• Smith is one of many Canadians who told CBC News about how unknown errors on their credit rating reports caused them financial strife. In some cases, even after creditors and collection agencies admitted to a mistake, it took several months to restore a credit rating.

The Brampton, Ont., truck driver, spent months trying to get his credit rating fixed after an error appeared on his credit report.

When applying for a mortgage in late 2011, Smith learned that an unpaid Rogers bill for a “Marvin Smith” had been listed on his report since 2007.

He says his bank granted him the mortgage but denied him an overdraft, a credit card and a line of credit.

Smith sued debt collection agency iQor in small claims court over the name mix-up and won a $3,000 settlement in May of 2012.

 

Despite that, his Equifax credit report still refers to him as "also known as: Marvin Smith."

"I just applied for another card and I got turned down again and I had perfect credit," said Smith.

Many Canadians affected

Dan Barnabic, a Toronto paralegal who has represented clients in credit disputes for the past seven years, said the impact of a false credit score can be devastating.

   "You are what your credit is," said Barnabic. "And when you discover something that actually does not belong to you…, that will actually prevent you from getting credit, it's devastating. It turns into a horrific situation that people lose sleep over."

Few statistics are available about how many Canadians know about mistakes on their credit reports.

Consumer Protection BC, a non-profit that oversees provincial consumer laws, says that in the past three years it has received 341 calls from people complaining about inaccurate information on their credit reports.

But many provincial consumer protection agencies don't track how many complaints about credit ratings are about potential errors.

A national survey by the non-profit Public Interest Advocacy Centre published in 2005 found that 18 per cent of the people surveyed had discovered inaccuracies in their credit report. Ten per cent of those who discovered the issue believed they were denied access to financial services due to the errors.

Barnabic estimates the number could be much higher. The Toronto paralegal says about one-third of his approximately 3,000 clients have found inaccuracies in their credit reports.

"On a weekly, daily basis people would knock on my door and say, 'Dan, I have a problem. I have something on my report that does not belong to me,' " said Barnabic.

Unaware of charges

 Under the credit reporting system, companies — such as phone service providers and banks — provide information about clients and their payment history to Canada's credit bureaus, such as Equifax Canada Inc. and TransUnion Canada.

Companies pay a fee for the bureaus to keep track of clients. In return, the credit bureau provides the companies with access to consumer credit reports, which is based on information gleaned from all its client companies.

When a bank is deciding whether to grant a mortgage, for example, the financial institution can access the individual's credit record via a request to the credit bureau.

Consumers can also request to see their credit rating but few do. A mistake can go unknown for months or even years, potentially leading to extra interest costs or other issues.

Joan Biseau, a hospital technician in Moncton, N.B., believes she is still paying thousands of dollars in extra interest on a vehicle she recently purchased after her credit rating was downgraded due to an error by Rogers Communication.

Biseau was unaware of an outstanding charge on her Rogers account until three years after the fact, when a debt collection agency began calling in February, 2011. Biseau promptly paid the bill when notified.

The telecom company had sent her last bill for about $200 to the wrong address and later admitted to the mistake.

Despite Rogers acknowledging its error, the black mark remained on her credit rating for more than a year.

Biseau says it forced her to get a high-interest loan on the 2007 Chevrolet Cobalt she bought in September of 2011, increasing the cost of her purchase by up to $10,000.

"It's terrible. I'm not a millionaire. And I need my car for work," says Biseau. "So I had to buy it … for $7,000. At the end of it, I’m going to be paying $17,000 for my car because of the high interest rates.”

The information about the owed debt was removed from the TransUnion and Equifax credit reports after CBC contacted Rogers and Equifax.

Calls for federal oversight

   In a written statement, Rogers said that its policy is to investigate immediately when a customer contacts them. "If there is a mistake, we have the issue corrected with the collection agency and the credit bureau or bureaus and get confirmation from the collection agency that the correction has been made," the written statement said.

Paul Le Fevre, Equifax Canada's director of operations, says the agency depends on correct information from its member companies. Mistakes are rare, he said, but when they do happen, the company needs the creditors who supplied the information to sign off on it.

"What we rely on our members to do, though, is to remove that information or amend that information accordingly within the electronic media that they send to us," said Le Fevre.

TransUnion also responded in a written statement, stating that it aims to "maintain accurate information on every consumers' TransUnion credit report."

Consumers can report items believed to be inaccurate by phone or email and the company will investigate it, the statement said.

 

Under current provincial consumer protection legislation, companies can face fines, but Barnabic says the fines are rarely, if ever, used.

 

The Toronto paralegal says the federal government should oversee the credit rating industry rather than leaving regulation in the provinces’ domain.

 

"Our elected government so far has showed very little interest in improving the system and actually getting the consumer on equal footing with the financial sector," said Barnabic.

 

He suggests modeling it on the U.S. system, where credit bureaus must by law investigate consumer complaints about disputed information on their credit rating report within 30 days.

Barnabic says credit bureaus should be forced to either delete errors immediately or face a hefty fine.

 

For your personal credit Analysis call or email

 

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com

Refinance Your Home For A Vacation Home In Spain

Spain Rolls Out The Red Carpet to Foreign Home Buyers-- Is this the time to buy a second home especially in Spain?




Protestors take part in a demonstration against the public payment of banks' debts in Madrid, October 13, 2012. The placard reads "Real Economy".

Photograph by: Juan Medina, Reuters

Beleaguered economy prompts country to offer a little bit more than a welcome basket of baked goods if you decide to move there

Spain — Looking for a new place to call home? Spain is hoping to give you a little bit more than a welcome basket of baked goods if you decide to move there. In an attempt to reduce the country’s bloated stock of unsold homes, the government is set to offer permanent residency to any foreigner provided they buy a house or apartment worth more than C160,000 ($200,000).
The plan, unveiled by Trade Ministry secretary Jaime Garcia-Legaz Monday and expected to be approved in the coming weeks, would be aimed principally at Chinese and Russian buyers. Spain has more than 700,000 unsold houses following the collapse of its real estate market in 2008 and demand from the recession-hit domestic market is stagnant.
Prime Minister Mariano Rajoy stressed Monday that the plan has not yet been finalized, but added that Spain “needs to sell these homes” and that getting them off the market could help revive the nation’s devastated construction industry.
The plan to unload the unsold homes comes as thousands of houses have been repossessed by banks and their owners evicted because they cannot pay their mortgages. The government last week approved a decree under which evictions would be suspended for two years in specific cases of extreme need.
The country’s residency offer would beat others in bailed-out countries such as Ireland and Portugal, where residency papers are offered to foreigners buying houses worth more than the C400,000 and C500,000, respectively. However, Latvia on the Baltic coast offers a cheaper deal, with property buyers eligible to receive residency permits if they purchase real estate in capital Riga worth C140,000 or C70,000 in the countryside.
Spain is in the midst of a double-dip recession with 25 per cent unemployment, though Rajoy said he believes Spain has managed to avoid a financial implosion and will start growing again in late 2013 and in 2014.
“I’m convinced that the worst is over,” Rajoy told reporters after meeting with Brazilian President Dilma Rousseff.
The stricken state of the country’s real estate market was highlighted Monday by figures from the Bank of Spain which showed that the level of bad debt in the country’s banks had risen to a record 10.7 per cent of their loan total in September.
The bank said the amount totaled C182 billion, up from C179 billion in August — the 15th monthly increase in a row.
The 16 other countries that use the Euro have agreed to lend Spain up to C100 billion to help support the country’s banks weighed down by these bad loans and investments. On top of the bank loan, Spain has been under pressure to apply for more outside financial aid to help it manage its debt and deficit. The European Central Bank has insisted on the move before it will make good on its pledge to buy the bonds of certain troubled countries to help lower their borrowing costs.
Spain says it is waiting to know all the conditions that might come attached to the rescue package before making a decision.

© Copyright (c) The Vancouver Sun

Footnote To This Story:
Many countries need help from foreigners to buy their houses. Want to buy a summer home in Spain or anywhere else? It can be as simple as refinancing your home in Canada to get the cash to buy a second home. For more information on refinancing your home call or email me.
akroemer@mortgagegroup.com
1.250.650.4182

Imagine leaving your home in Canada for your vacation home in Spain. Rent out the home while it is not used by you or a family member. Great mortgage helper.

CMHC Housing Forecast Weaker

 

CMHC Housing Forecast Weaker than Originally Thought


We all know there’s a softening going on right now in most Canadian housing markets. Homebuyers know it, home sellers know it, and now, CMHC knows it, too. While the Crown corporation has undoubtedly seen the softening going on for several months, now they’ve come out with a new forecast for the remainder of this year. And it’s not as optimistic as their last forecast was.

 

 

As you can see from the chart above, the numbers in most housing categories have gone down, albeit very slightly, from the previous forecast. Given the fact that most of these categories have to do with prices, it may or may not spell good news for the housing market, depending on your outlook.

• The number of existing homes to be sold this year, according to CMHC, will be about 465,600 – a drop of about 20,000 units from the organization’s forecast this past summer. While home sales being down doesn’t typically spell good news, this will bring demand down, which will also have an affect on prices (which is great!)
• Resale prices will drop by about $3,000 when sales for pre-existing homes fall to an average of $365,100.
• Average mortgages on new homes will also fall to about $370,500, about $6,800 lower than what was estimated. This could be very good news, as prices are simply too high right now and keeping too many out of the market.
• In 2013, CMHC predicts that up to 489,700 units will be sold; that’s up by about 2,100 from their earlier forecast.
• Housing starts for this year will be somewhere in the range of 210,800 to 216,600. That’s slightly higher than the previously forecasted range of 196,800 to 217,000. Next year that range is going to drop from 2012′s number though, as it’s expected to be only 177,300 to 209,900 starts.

Think this bodes bad news? It really all depends on your perspective. If you saw our housing market this past year as being a healthy one, yes, the results are probably a bit disappointing. But truthfully, the drop in numbers is going to help us all. As prices go down, more options are opened up and more people can get back out on the market (such as all those that have been patiently waiting for prices to drop.) It also means that there will be more competition on the market, but this time it could be among sellers trying to get buyers to their properties – which is great for anyone looking to buy!

And there’s also the fact that the housing market isn’t the be-all-end-all of Canada’s economy. Yes it does make up a large portion of it, but we do have other supporting factors we can rely on. Mathieu Laberge, deputy chief economist at CMHC, says, “A weaker outlook for global economic conditions and the waning of the effect of pre-sales from late 2010 and early 2011, which contributed to support multi-family starts this year, will bring moderation in housing starts next year.

He also says, “Nevertheless, employment growth and net migration will help support housing starts activity going forward.”


Kate10 November, 2012, 4:00 pm

Get a Mortgage in British Columbia to Buy US Property

Angela Kroemer – The Mortgage Group

Your British Columbia US Property Financing Expert

TMG The Mortgage Group
Vancouver Island, British Columbia
Cell: (250) 650-4182
Toll Free: 1-888-679-0190
Toll Free Fax: 1-888-679-0192

British Columbia Mortgage Financing

---

Angela Kroemer
TMG – The Mortgage Group

British Columbia US Real Estate Financing Expert

Angela Kroemer is a BC Mortgage Professional with TMG The Mortgage Group Canada Inc., serving clients from Victoria to Port Hardy on Vancouver Island and in all areas on the mainland such as Vancouver, Surrey and Kamloops.

Background in Business Administration to Find You a Great Mortgage

Angela received her Business Administration , majoring in Accounting in Ottawa and moved to The Comox Valley, British Columbia (BC) where she worked with smaller companies. Angela enjoyed working with these companies as she worked side by side with the business owners, creating not only business relationships, but also lasting friendships.

Your British Columbia Mortgage Group Specialist

Now working with TMG, The Mortgage Group Canada Inc in British Columbia, Angela has access to products and rates of over 50 BC mortgage lenders, can work with you to develop a plan, specifically suited to you and your situation. Whether you are purchasing a new home in the US or Canada, refinancing a mortgage, or extracting equity for an investment such as real estate in the United States. Angela can help you find your perfect mortgage by providing you with unbiased advice. Your bank or credit union has one set of mortgage products and mortgage rates to offer, giving you only one choice.

British Columbia Mortgage Brokers Gaining Popularity!

We’re growing – In Canada, approximately 1 in 4 mortgage borrowers are using a mortgage broker, and almost 1 in 3 in British Columbia (BC). Angela’s clients include average families, professionals, first time buyers, self employed workers, vacation home buyers, rental home buyers, and clients from all backgrounds.

Member of the Canadian Association for Accredited Mortgage Professionals (CAAMP)

As a member of the Canadian Association for Accredited Mortgage Professionals (CAAMP), Angela has met academic requirements for licensing, and is governed by strict professional rules of conduct designed to ensure that the advice given is impartial and meets the needs of all her clients. As well as a member of CAAMP, Angela has received the Accredited Mortgage Professional (AMP) designation. AMP Mortgage Brokers are well trained, well informed and committed to providing you with the advice and choices that fit your situation. AMPs are required to complete ongoing education which ensures they are up to date on all aspects of their profession. Licensing is not required of most mortgage representatives in Banking Financial Institutions and thus you are not receiving the same expertise as you would with a British Columbia licensed mortgage professional like myself.

Becoming a British Columbia Mortgage Professional is one of the best decisions Angela has made. It is a remarkable field, getting people into their dream homes, saving clients thousands of dollars from lower interest rates or better options such as better prepayment options, so they can be mortgage free years faster. Mortgage rules are always changing and as a BC Mortgage Professional you must adapt to those changes. It is like a puzzle that you must fit all the pieces together to get the best mortgage options and rates. I enjoy the challenge as well as meeting people from all over British Columbia.

Whether you live in Victoria, Vancouver, Comox Valley, Kamloops, Surrey, or Kelowna, Angela Kroemer and The Mortgage Group can guide you to a plan that works for your US real estate property purchase anywhere in the United States.

Contact Your British Columbia Mortgage Specialist To Discuss Your Options

Contact Your British Columbia US Real Estate Financing Expert to discuss your options to finance a property in the United States. If you are considering a second home or investment property in the United States, you probably have a significant amount of equity in your Manitoba home which could be used to make a low cash offer in the US city of your choice!

 

 

 

http://canadabuysouth.ca/mortgages-to-finance-us-property/british-columbia/?goback=%2Egde_3095873_member_184537221

 

 

 

Benefits of Caffeine

Caffeine Increases Ability To Recognize Positive Words

As any coffee drinker will tell you, the day immediately begins to feel better after taking that first earthy, faintly bitter sip o’ joe from the edge of a steaming cup.

A new study from German researchers reinforces the positive aura swirling around the magical brown elixir as they have shown that caffeine can increase a person’s ability and speed in recognizing words with a positive connotation. The study also shows that the stimulant had no effect on recognizing words with negative or neutral connotations, like ‘wall’ or ‘table’.

Previous studies have shown that a normal dose of caffeine boosts performance on straightforward cognitive tasks and behavioral responses. Other studies have shown some memories are enhanced when strong emotions are associated with specific trigger objects, but there has been no clinical link between caffeinated performance and emotional triggers.

To examine this potential link, the researchers recruited 66 people between 19 and 32 years old. Each participant was given either 200 mg of caffeine or a placebo and then seated in front of an LCD monitor where they were presented with uppercase letter strings for 150 microseconds at a time. They were instructed to decide as quickly and accurately as possible if the presented letter string was a German word or not. Participants pressed the left mouse button to signal that it was a word and the right mouse button to signal it was not.

The results showed that those participants who were given the caffeine were able to process the positive words more quickly and accurately. This was likely the result of the well-documented link between caffeine intake and dopaminergic transmission, of the effects of dopamine on the language-dominant regions of the brain.

“Caffeine is a psychoactive substance that in low doses blocks the inhibitory adenosine receptors in the brain, thereby functioning as an adenosine antagonist,” the scientists wrote. “This antagonist behavior leads to an increase in central nervous activity most probably via an increased dopaminergic transmission due to multiple interactions with dopamine receptors in dopamine-rich brain regions”
This latest study, from researchers at Ruhr University, can be filed under pro-caffeine as the legal stimulant seems to constantly be on the receiving end of conflicting clinical studies. Previous research has shown that too much caffeine can lead to sleep problems, high blood pressure, and addiction.

Caffeinated energy drinks have even been implicated in death as the FDA has recently disclosed that it has received reports about five deaths since 2009 may be linked to Monster Energy drinks. This has led to further investigation and calls for scrutiny of the caffeinated beverage industry.

Despite those grim reports, many studies have shown some benefit to moderate caffeine intake. A 2007 study found that coffee drinkers might even reduce their chances of dying from heart disease. Another study found drinking coffee may reduce the risk of developing prostate cancer. In that study of nearly 50,000 men, those who drank coffee the most were found to have a 60 percent lower risk than those who did not.

Source: Brett Smith for redOrbit.com - Your Universe Online

Our Low-Interest Rate Environment

Our low-interest rate environment

Where are interest rates heading and when will they start to move? This has been the hot topic of conversation for the past two years and it looks as if it will continue until rates finally start moving and everyone can exhale and say, "yes, there, we knew it." Or consider this: Can we just accept that low-interest rates are now the norm, since we've been in this environment since 2010, instead of trying to second-guess what the Bank of Canada will do every month? In a recent report by CIBC's Chief Economist, Avery Shenfeld said maybe it is time for a new message. It's easy to forget that the housing market has been a vital component to the success of the Canadian economy during the past decade. In many respects, the industry has helped to stabilize a faltering economy. Consumer spending and confidence remains high - a large of part of that comes from allowing consumers to take advantage of low interest rates and to tap into their equity for either spending or investing purposes. Yes, the government in Canada has had to keep our economy afloat during the recent recession first, by injecting billions of dollars in spending into the economy and second, by instilling a degree of confidence in Canadians and investors by tweaking credit guidelines. However, at the end of the day, it still comes down to actions taken by every day Canadians who put their faith in their ability to repay loans, their ability to manage their household debt, and through consumer spending, that is pulling us through. We are very fortunate to have weathered the recession as well as we have. However many Canadians are still worried. They are worried about rising rates, they are worried about the possibility of decreasing home values, and they are worried about their ability to save for the future. Let's look at recent messages from Bank of Canada's Mark Carney. He delivered the message that consumers will pay more in the future for what they borrow today. The latest economic news is positive for a growing economy going into 2013, which will make it easier for Carney to raise the rates. However, recently Carney backtracked slightly and has hinted that rates are not likely to rise until later in 2013 and/or into 2014. He also said that he sees no "imminent" changes ahead, but that "over time, rates are more likely to go up than not." The latest Housing Market Outlook reports that although slight increases are expected in 2013, rates will remain low by historical standards. Inflation is another reason rates could rise. Canada's inflation rate is sitting at approximately 1.2% - the lowest level in more than two years. If this should start to rise past Carney's 2.5% benchmark then rates could rise. The retail sector is a good indicator about consumer confidence and the state of the economy. New research from Ernst and Young predicts that 2012 holiday retail sales in Canada are expected to increase by 3.5% over last year. It's clear that Canada's economy continues to expand and that we are operating on sound principals. According to Carney, Canada is no longer in the recovery stage but in the expansion phase. That is good news for all economic sectors. Will interest rates go up? They will, but likely not until late 2013 so as not to negate any of the positive effects of a growing and expanding economy.   About The Mortgage Group Canada Inc. TMG Canada is an innovative and progressive mortgage brokerage company. With mortgage professionals serving 9 provinces and 3 territories, TMG is national in its reach helping Canadians navigate their unique mortgage options with over 50 lenders. TMG has a network of more than 800 mortgage brokers and agents and has helped more than 200,000 Canadians arrange their mortgages in the past 20 years.